With this year’s tax season approaching, Roselle Park residents – along with all New Jerseyans – who served in the armed forces should be aware that eligible veterans qualify for a $3,000 exemption on their state income tax. It was part of a bill that increased the state’s gas tax which was passed by the state legislature then signed into law by then-Governor Chris Christie in October of 2016.
The Veterans Income Tax Exemption took effect starting with the 2017 tax year which means it can be claimed in this year’s tax return. Those veterans who have been honorably discharged or released from active duty in the armed forces, Reserves or National Guard the last day of the tax year are eligible for the additional $3,000 personal exemption.
Individuals who claim the exemption must first certify they are exempt with the New Jersey Department of Treasury. Anyone who does not certify before filing for the exemption will need to submit documentation (DD-214) showing the honorable discharge or release. Once the Division of Taxation confirms eligibility in the first year of filing, there will be no need to submit documentation each year thereafter in which the exemption is claimed. The Division will send a letter confirming eligibility, which should be kept with personal records.
There will be a box or oval on the state return which must be completed to claim the exemption.; otherwise, the exemption will be disallowed.
The United States National Archives and Records Administration can assist with obtaining a copy of military records (link).
More information about qualifying for the exemption can be found on the State of New Jersey Division of Taxation’s website (link).
A copy of the form is available below for printing and/or downloading;
Download NJ Veterans Tax Exemption Submission Form